You are probably familiar with BNB, the cryptocurrency that is in the center of attention for users of Binance. Indeed, owning BNB gives you access to multiple advantages: reduction of transaction costs, obtaining better commissions on referrals, using all the opportunities of the launchpad and the launchpool and other advantages! Thus, you have understood, the leader of the exchange platforms of the crypto ecosystem manages to give an important utility to the BNB. However, what about the price of the asset today? In order to determine the path that the token could take over the next few months, let’s now turn to our charts.
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BNB on its ultimate support?
What we can see on a monthly scale is the explosion that the BNB experienced after breaking free from the monthly resistance to $32.9. If we take the rise to the highest point, the all time high, the price has been multiplied by 21! After that, the BNB lateralized for several months, registering a low point at $211.7 and a pivot zone (shown in blue) at $355/$380. When the price is above this zone, the chances of a return to the highs are greater. On the contrary, when the price loses the pivot zone, a return must be considered on the low point of the lateralization zone.
You can see, we are currently at the ultimate support where the price had returned in May 2021. It is clear that a Month-endbelow this level, will be a strong bearish signal. It will demonstrate the buyers’ impossibility of maintaining the price above the $211.7. But then, what would happen in the context of a realization of the bearish close? Technically, the price should correct its February 2021 move which was an overextension of the price to the upside. Thus, on a monthly scale, if there is one level to keep in mind, it is the monthly resistance from 2019 to the end of 2020 which is located at $32.9.
Within the framework of a continuity of the sales force on the markets in view of the context unprecedented macroeconomics, galloping inflation and rising interest rates, nothing is impossible. However, with BNB, this might seem pessimistic to some. Indeed, given its leading position as an exchange platform, its burn mechanism to eventually reach a supply of 100 million BNB, as well as all the utilities given to the token, could we see a further drop of 84%?
A possible rebound before going lower?
You could see it, the BNB is currently on its monthly support. Moreover, on a weekly basis, the previous closing was saved to within a few dollars. Could this be a sign of a return of buyers? Or a simple buyer trap before returning to lower price levels? Theoretically, we could expect a bounce in BNB in the short term. Finally, the buying volume is very low given the current context of the financial markets. If we break below, we can identify an intermediate level at $46. This is a former weekly resistance below which the price stalled for several weeks before heading higher.
Conversely, a rebound in the price would be a potential opportunity to sell with a short (all with an interesting risk management). The market is bearish on the monthly and weekly scale on the BNB. Thus, unless there is a new order, each rebound must be seen as a price correction before starting to fall again. In this context, it seems relevant to have in mind the level of 260 dollars on the BNB. Formerly support, this level could operate as resistance if the price indulges in a bullish bounce in the short term. However, having a return to $322 seems far too optimistic. Besides an increase of 50% on assetsa pullback confirming the bearish breakout has already taken place during the month of May.
BNB at $32.9? A scenario that is not absolute
With l’daily scale, we can refine the scenarios and determine new areas where the price could react in the event of a larger drop. First of all, it seems relevant to me to maintain the scenario of a rebound which will not be of great amplitude. Thus, although one must bear in mind the $322, keep your eyes peeled for the $260 area. On the chart you can see the scenario of a rejection on this area before dropping lower. Nevertheless, it is quite possible to have almost no buying pressure. Thus, the breakout of the current zone could come faster than expected and take BNB to levels we haven’t seen since early 2021.
What we must also bear in mind is that, in addition to the level at $32.90, there are two daily zones. A first to $133.5 and a second to $74.8. During the powerful upswing, these are the only two areas where the price has consolidated. Thus, it is complicated to have other technical areas. What is important to understand is that technical analysis is not an exact science and the price has no obligation to return to these levels.
Could BNB take the elevator down?
I very rarely use indicators to analyze an asset and make decisions. However, the volume indicators are very interesting and provide a more detailed approach to price movements. In this case, you can see the use of the VPVR (Visible Range Volume Profile). This indicator represents the volumes traded on BNB for each price level visible on the chart. So, you can figure it out yourself, some areas have a bigger trading volume than others.
What does that mean ? The levels at which BNB has been trading for several months have allowed the asset to build real technical zones where buyers and sellers are positioned. However, the bullish explosion left an important price zone on the asset with very low volumes. This area is called the LVN (Low Volume Node). Here, two reactions are possible: a buying reaction to reject the return of the price on the LVN. The second reaction is a bearish breakout as powerful as the bullish breakout that took place beforehand.
What should worry us is the lack of buying momentum. Are these out of breath? Or are they worried about the macroeconomic context and therefore, for the moment, have no interest in buying BNB? Finally, if there is one thing to mention with the Visible Range Volume Profile, it is that within the identified LVN, the zones with the largest volume are in confluence with the two demand zones identified previously. This therefore confirms our previous statements.
Yes, this crypto nugget is already ending! Now you have in your hands all the key levels to keep in mind during the next few months on the BNB. So, lean in for a return of buyers and a multi-week rebound in the asset before heading back down. You can also opt for a powerful drop coming very soon. One thing is certain: if the fall comes, it will prove powerful. Whether on a monthly, weekly or daily scale, the downtrend. Thus, opting for a definitive rebound of the asset would be (too) optimistic and decorrelated from the current financial market situation.
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